Acquisition expected to be settled this month.
Minor DKL Food Group has announced it has entered into several conditional Share Purchase Agreements to acquire a controlling stake in brands of Melbourne-based VGC Food Group. This includes Veneziano Coffee Roasters, The Groove Train and Coffee Hit.
The firm expects the ongoing negotiations to be settled this September. Once settled, businesses will be grouped and operated collectively as VGC Food Group.
“We are excited to announce our investment in three premium retail food brands which align with our strategic objective of being a global leader in retail food, coffee and franchising and complement our existing retail food franchise system portfolio," said Minor DKL CEO, Jason Ball.
"The acquisitions represent the conclusion of more than a year of due diligence and we are pleased to partner with the founders in driving further development and expansion for the benefit of all stakeholders.”
“VGC Food Group will continue to be operated under the guidance and stewardship of founders Mr Craig Dickson and Mr Rocky Veneziano, supported by the infrastructure and resources of both Minor DKL throughout Australia and New Zealand, and more broadly throughout Asia in conjunction with our partner company, Thai-listed Minor International”, he said.
Adding, “whilst Veneziano Coffee Roasters, The Groove Train and Coffee Hit will be managed independently of Minor DKL’s existing retail food franchise systems, there exists substantial synergies through leveraging supply chain, property, leasing, training and information technology infrastructure. These will be gradually realised throughout 2015 following a period of establishment and integration.”
Veneziano Coffee Roasters Managing Director, Mr Craig Dickson said, “We are very excited to partner with Minor DKL and Minor International to continue to invest and grow our brands in Australia and enter markets in New Zealand and Asia.
Minor is known for successfully partnering with entrepreneurial founders thereby ensuring the founders’ principles and objectives are maintained, whilst providing infrastructure and resources to effectively grow the brands; this is why we are excited about this opportunity”.
On his part, Groove Train Managing Director, Rocky Veneziano said, “After 12 years of building our brands, it is very exciting for us, our franchisees and our team to be able to partner with Minor and achieve our expansion goals. The partnership will ensure the long term success of our brands and provide fantastic opportunities for all our stakeholders, most importantly our Groove Train Restaurant and Coffee Hit franchise partners”.
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